Some of the recent buys have done well. The likes of KVB, Royal Orchid Hotels, AB Capital, South Indian bank, HDFC bank are all up in a descent way. Don’t intend to sell/trim any of these yet. I think the uptick in credit growth in India looks sustainable. Should be a nice trend to ride on for next 1-2 Yrs unless valuations become too frothy.
Key things to monitor ( in presence of descent credit growth ) –
Retail / Corporate advances mix. Should be a healthy balance.
CASA franchise and Deposits growth… because if this is not firing, credit growth will soon fizzle out for that individual Bank / NBFC.
Need to be mindful of weather its a genuine turn around or a rising tide lifts all boats phenomenon ( like in case of PSU banks. Have to be careful in KVB, South Indian Bank, AB Capital )
Some fresh tracking positions initiated in last 2-3 days ( each < 1 pc of portfolio ), these are –
Borosil Ltd ( I expect continued business momentum )
Emami Ltd ( due potential business turn around )
IndusInd Bank ( it may be due for a re-rating )
Mild additions in Monte Carlo fashions, Royal Orchid Hotels ( due seasonally strong Qtly results coming up in Q3 and Q4 )
Since most are small caps, will continue to tread cautiously.
Disc : I am biased. Please do ur own due diligence.
| Subscribe To Our Free Newsletter |
